Lender, borrower looking for a “stable and reliable” buyer for a holding company
Vishvapradhan Commercial Private Ltd, a little-known entity through which Adani Group launched a hostile bid for NDTV Ltd, had an annual turnover of just Rs 60,000 a few years ago but granted Rs 400 crore of Rs in interest-free loans to the broadcaster in 2009. , as per Sebi’s orders.
In addition, the “loan agreement” signed at the time with the promoters of NDTV included a unique provision that “over the next 3-5 years, the borrower and the lender will seek a ‘stable’ and ‘reliable’ buyer “of RRPR, which will maintain the brand and credibility of NDTV”.
RRPR Holding Pvt Ltd was set up by Radhika Roy and Prannoy Roy as a limited liability company, whose 29.18% stake in NDTV had apparently been transferred to VCPL, which has now been sold to Adani Enterprises Limited and AMG Media Networks Limited.
On Tuesday, VCPL exercised the right to acquire 99.5% of the shares of RRPR, which triggered an open offer to acquire up to 26% of the capital of NDTV.
Subsequently, VCPL along with Adani Media Networks Ltd and Adani Enterprises Ltd made the open offer at a price of Rs 294 each for the acquisition of up to 1.67 crore fully paid shares of NDTV, bringing the size at Rs 493 crore.
However, NDTV said the debt was converted to equity without any contributions from the founders or the company.
The rights exercised were part of the loan agreements signed by VCPL with the promoters of NDTV.
NDTV took a loan of Rs 350 crore from VCPL in 2009 to repay the loan previously granted by ICICI Bank news channel and a year later the broadcaster secured a loan of Rs 53.85 crore from of VCPL. The loan from ICICI Bank was taken out to repay an earlier loan from Indiabulls.